Things to Consider When Buying Your First Home

The thought of buying your first home is both overwhelming and exciting. You know that you will soon find your dream house, but at the same time, you will face plenty of requirements and details that can affect your decision.

You can make the process smoother by taking it one step at a time and taking into consideration the following:

Can you afford to purchase a property?

The first thing to consider is how you plan to purchase the property. First-time buyers usually pay a deposit of about ten per cent of the value of the property. The prospective homebuyer pays the balance of the cost through the mortgage. Find out how much you can borrow by using a free mortgage calculator you can find online.

Getting a mortgage

Improve your chances of getting a mortgage by checking your credit score. Although there is no minimum credit card score to buy a house, it will help you get a better mortgage deal if your credit rating is higher. Thus, increasing it will be advantageous before you apply for a mortgage.

Mortgage products are plentiful. Fortunately, an independent mortgage broker can help people — those with variable earnings and the self-employed. Check out the benefits a mortgage adviser in Kent can provide you, as you can work with expert mortgage and financial advisers who know the properties around Kent.

Save up for the deposit

When you have an idea of how much you can afford to spend for your first house, then you can start saving up for the deposit. When your budget for the deposit is substantial, it is easier to find the cheapest mortgage rates and the best mortgage deals. Choose the right one, as some mortgage brokers may offer a smaller deposit, but the interest will be higher.

Know what to budget for

Buying a house is no simple matter. You should know what to budget for to avoid surprises in the middle of the process. Here are some examples:

  • Conveyancing fees. You need help from a conveyancer or solicitor.
  • The land registry fee. It varies depending on the purchase price.
  • Stamp duty. A first-time homebuyer pays higher stamp duty.
  • Homebuyer survey. You need this to know the property’s condition.
  • Mortgage fee. It is an arranger fee for setting up the mortgage loan.
  • Valuation fee. It is a fee charged by the mortgage lender to check if the property is worth the amount of the loan.
  • Mortgage broker. It is advisable to use an independent mortgage broker, so you do not have to pay a fee on top of the commission.
  • Building insurance. It is required by mortgage lenders.
  • Indemnity insurance. It protects you in case of problems later.
  • Reservation agreement. You and the seller agree on a price to prevent each party from pulling out of the agreement.

It is not easy to find a home. The process is intricate and very detailed. Take the time to view properties, which you can do online. You can make the process easier by getting professional help from a solicitor, a mortgage broker, and a surveyor. Choose the right solicitor who will do most of the work.